What is Eidoo

Antonio Madeira
03 Oct 2017

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During the past months, cryptocurrencies have surged in popularity, reaching new heights both in value and trading volumes. They are being increasingly accepted and used all over the world, and new business models and applications are being continuously offered by both startups and enterprises. Many of the proposed use-cases for this set of technologies are showing critical limitations and significant drawbacks.

One particular class of applications that is clearly proving itself as a market trend is the use of blockchain technologies for the purpose of issuing, transmitting, storing and exchanging custom digital assets, or 'tokens'. However, at present, it is not possible to give unique names and symbols to Ethereum tokens, because you can create tokens that have the same name or symbol to other pre-existing tokens. This is an important problem for a reliable use of digital currency wallets because each token has a different Ethereum address, but the human eye is incapable to handle multiple alphanumeric codes with ease, so each token must be identified by a unique name, an abbreviation, and a symbol. Even so, features like security, ease of use and privacy are still far from solved and the optimization of these features is an arduous and complex task, involving areas like cryptography, game theory, distributed engineering, open source development and security-orientated electronics.

What is Eidoo

Eidoo aims to solve these problems with a set of products and services (wallet, exchange, digital identity solutions, and more) that will provide an intuitive user experience, focused on a simple and secure way to store, purchase, sell and transfer digital assets, as well as buy or sell any goods paying in cryptocurrencies without relying on any central authority.

The Wallet will be the core of the project. It will be a multi-asset wallet and it will be conceived for the mobile world. A single integrated environment that will be used to control all tokens, without the need for elaborate configurations, but still leveraging safety standards and practices.

Innovative services to exchange cryptocurrencies and tokens will be directly embedded in the platform. The integrated exchange system will never require assets to be transferred to any centralized third party. The user will always be in full control of his funds and the trades occur directly between users through automated processes.

Eidoo will also offer digital identity solutions. There are a series of situations where it will be extremely useful to associate addresses to particular digital identities. For example, to pay taxes or get tokens with specific uses within public administration, addresses could be linked to identities recognized by the government. Addresses that might need to have a certain level of certified status, for example, a shop, could prove their identity through a mechanism of web trust.

How does it work?

The project will cover two different strategies and implementations, and also work with two different teams - The Ethereum Team and the Bitcoin Team. The same vision of an accessible and secure wallet for blockchain-based smart assets, will be integrated into a fast and easy to use, flexible turn-key Ethereum implementation, based on ERC20 standard and EVM contracts, and also, in a secure, scalable, privacy-compliant Bitcoin implementation, based on the new asset protocol RGB and off-chain trusted computing, with a traditional non-profit open source funding approach.

On the Ethereum side, Eidoo’s goal is to have an Ethereum Light Client for mobile devices, a client that is able to verify all the hash chains necessary to validate the information received by other nodes and concerning only its own Ethereum address, without the need to download and validate the entire blockchain. New tokens (based on the Ethereum blockchain) are automatically detected by the wallet and made available for use. The Ethereum Wallet will also have an embedded token system to fund development.

A special index that will group tokens issued by companies with legal personalities or legitimate tokens will be implemented. Tokens having the same names/symbols as those in the index are labeled by Eidoo as untrusted, in order to avoid scams.

The Eidoo hybrid exchange will always maintain the keys on the mobile device, meaning that if the exchange has a problem, you cannot lose the keys because the keys are kept by the user. The exchange uses a feature known as atomic swap transactions. This means that your tokens will never leave your wallet until the exact time of the conversion.

On the Bitcoin side, the Eidoo Bitcoin Wallet will be able to manage generic assets on Bitcoin’s blockchain. A key feature of the wallet is the generation of deterministic key pairs from 12/24 words, called seed as per BIP39 standard. On top of that, in order to improve security, during the creating of the wallet the user can introduce a passphrase which will be used to encrypt the private key generated in the above process.

For the development of the Bitcoin exchange, Lightning Network will be heavily exploited, as it enables Eidoo users to transfer an asset in a cheaper and safer environment. Also, the hybrid exchange for bitcoin will offer atomic swap transactions.

Eidoo will use a “Hierarchical Deterministic Wallet” approach to make the application secure, allowing users to have much more control over their assets. With it, users can secure all their multi-asset accounts and addresses, as well as their signing keys, with a single secret phrase, encoded in twelve common words. Eidoo will also provide a tool that, without the need for central servers, allows users to retrieve and recover digital assets wherever and whenever necessary.

Eidoo token and ICOTo fund the development of the Eidoo ecosystem, an ERC20 token (EDO) will be created on the Ethereum blockchain.

The participation on the Eidoo token sale can only be done on the app itself (Google Play | App Store) through a dedicated keystroke and a guided procedure which encompasses the reading and the certified acceptance of the terms and conditions of the token sale.

The Eidoo ICO will commence on Wednesday, October 4th, 2017 and will end on October 16th, 2017. During the ICO 20.000.000 EDO will go on sale at $2.30 per token.

More information concerning Eidoo token distribution can be found here.